BROCK UNIVERSITY

ECONOMICS 3P03

MONEY AND BANKING I

Fall 2015





A. General Information

Instructor Professor Zisimos Koustas
Office Plaza 437
Phone 688-5550 Ext. 3326
Web Page http://spartan.ac.brocku.ca/~zkoustas/
Office Hours T 10:00 - 11:00  TH 10:00 - 11:00



B. Course Grading

There will be a midterm test and a final examination. In addition, two problem sets will be assigned and marked. The average of the assignment grades will be used to calculate the final grade. The weights attached to each piece of work in the course are as follows:
Midterm test 40%
Assignments
10%
Final examination 50%

Note: Students may withdraw from the course without academic penalty by Tuesday, November 10, 2015.


C. Suggested Study Method
Attending classes regularly and taking class notes is strongly recommended. Active class participation, through contributing to the discussion, is very much encouraged. Discussing the assigned problems with classmates is allowed and indeed encouraged. However, the final product must reflect your own work. Late assignments will not be accepted after the solutions have been posted online. Otherwise, a penalty of 10 marks per overdue day will be applied.


















 D. Course Outline
Required Text: Frederic S. Mishkin and Apostolos Serletis, The Economics of Money, Banking, and Financial Markets: Fourth or Fifth Canadian Edition, Pearson Canada Inc., 2011 (2014).  


Part I: Introduction
Week 1 Chapter 1: Why Study Money, Banking, and Financial Markets?
Week 2 Chapter 2: An Overview of the Financial System

Part II: Financial Markets
Week 3 Chapter 4: Understanding Interest Rates
Week 4 Chapter 5: The Behaviour of Interest Rates
Week 5 Chapter 6: The Risk and Term Structure of Interest Rates
Week 6 Chapter 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Markets Hypothesis

Midterm Test: Saturday, October 31, 2015

Part III: Financial Institutions
Week 7 Chapter 8: An Economic Analysis of Financial Structure
Weeks 8-10

Chapter 13: Banking and the Management of Financial Institutions


Part IV: Asset  Allocation
Week 11 Portfolio Choice (Notes will be posted on Sakai)
Week 12 The Capital Asset Pricing Model (Notes will be posted on Sakai)